Bill Text: CA SB82 | 2011-2012 | Regular Session | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State cash resources.
Spectrum: Unknown
Status: (Passed) 2011-06-06 - Consideration of Governor's item veto stricken from file. [SB82 Detail]
Download: California-2011-SB82-Enrolled.html
Bill Title: State cash resources.
Spectrum: Unknown
Status: (Passed) 2011-06-06 - Consideration of Governor's item veto stricken from file. [SB82 Detail]
Download: California-2011-SB82-Enrolled.html
BILL NUMBER: SB 82 ENROLLED
BILL TEXT
PASSED THE SENATE MARCH 16, 2011
PASSED THE ASSEMBLY MARCH 16, 2011
AMENDED IN ASSEMBLY MARCH 14, 2011
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 10, 2011
An act to amend Sections 16325, 16325.5, 16326, and 70371.5 of,
and to add Sections 16328 and 16329 to, the Government Code, to
repeal Section 2103.1 of the Streets and Highways Code, and to amend
Section 14167.35 of the Welfare and Institutions Code, relating to
state cash resources, and making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately, bill
related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 82, Committee on Budget and Fiscal Review. State cash
resources.
(1) Existing law, until September 1, 2011, provides for a cash
management plan for the 2010-11 fiscal year to authorize the
Controller, Treasurer, and Director of Finance to defer General Fund
payments for up to 60 or 90 days, as specified, beginning July 2010,
for specific entities, including county offices of education, public
schools, and charter schools, subject to certain conditions.
This bill would modify these provisions and apply the cash
management plan to the 2011-12 fiscal year. This bill would also
establish specified procedures for deferrals, and repayment of those
deferrals, from county offices of education, public schools, and
charter schools. The bill would make conforming changes and make
these provisions inoperative on September 1, 2012.
(2) Existing law establishes the Immediate and Critical Needs
Account of the State Court Facilities Construction Fund and the
Hospital Quality Assurance Revenue Fund for the planning, financing,
and construction of court facilities and the support and enhancement
of hospital quality, respectively.
The bill would, notwithstanding existing law, authorize the
Controller to use funds in the Immediate and Critical Needs Account
and the Hospital Quality Assurance Revenue Fund for cashflow loans to
the General Fund, as provided in specified provisions of law.
(3) Existing law provides for the deferral of specified
apportionments on a pro rata basis from the Highway Users Tax Account
in the Transportation Tax Fund to cities, counties, and cities and
counties from July 2010 to March 2011, inclusive, and limits the
amount of those deferrals. Existing law permits cities, counties, and
cities and counties to borrow certain designated funds from their
accounts and requires that any borrowing be repaid with interest that
would be applied to a specified purpose.
The bill would repeal these provisions of law.
(4) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
(5) This bill would appropriate the sum of $1,000 from the General
Fund for administrative costs associated with this act.
(6) This bill would declare that it is to take effect immediately
as an urgency statute and a bill providing for appropriations related
to the Budget Bill.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16325 of the Government Code is amended to
read:
16325. (a) An effective cash management plan is needed for the
2010-11 and 2011-12 fiscal years to address General Fund cash
shortages that otherwise may occur during the fiscal year. The goals
of the cash management plan described in this section are to
accomplish the following:
(1) Increase the state's ability to address cash shortages in a
quick and responsible manner.
(2) Address rating agencies' and bond markets' concerns regarding
the state's ability to react effectively to cashflow pressures while
providing a higher level of certainty to bondholders.
(3) Preserve external borrowing capacity and affordability for the
state's infrastructure programs.
(4) Provide a higher level of predictability to affected programs
and entities where deferrals or delays are required.
(b) Nothing in this section or in Sections 16325.5 and 16326 shall
be construed to affect in any way the timing or amount of payments
of state payroll or to affect in any way any judicial proceeding
related to the timing or amount of state employee compensation.
Nothing in this section, Section 16325.5, or Section 16326 shall be
construed to authorize the delay of debt service payments, rental
payments that support lease-revenue bonds, reimbursements to local
governments for certain reductions in ad valorem property taxes, as
required by Section 25.5 of Article XIII of the California
Constitution, or required payments for borrowings secured by these
repayment obligations, payments required under a Funds Transfer
Cooperative Agreement that are pledged to pay debt service on state
payment acceleration notes that were issued to finance toll bridge
seismic retrofit and replacement projects, payments appropriated in
any year to pay a court judgment pursuant to the settlement agreement
in Paterno v. State (2003) 113 Cal.App.4th 998, or payments to small
vendors as defined in the California Prompt Payment Act (Chapter 4.5
(commencing with Section 927) of Part 3 of Division 3.6 of Title 1).
Nothing in this section, Section 16325.5, or Section 16326 shall be
construed to affect the applicability of interest, late payment
penalty, and similar payment requirements under the California Prompt
Payment Act when payments to persons or entities specified in those
laws are delayed.
(c) Deferrals authorized in the cash management plan described in
this section and in Sections 16325.5 and 16326 are in addition to any
payment delays, payment deferrals, or payment schedules specified in
other laws. Deferrals authorized in the cash management plan
described in this section and in Sections 16325.5 and 16326 do not
replace, remove, or alter any previously implemented payment delays
or payment deferrals.
(d) Activities by the Controller, Treasurer, and Director of
Finance to implement and carry out the cash management plan described
in this section and Sections 16325.5 and 16326 are hereby exempted
from the provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3).
(e) This section shall become inoperative on September 1, 2012,
and, as of January 1, 2013, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2013, deletes
or extends the dates on which it becomes inoperative and is
repealed.
SEC. 2. Section 16325.5 of the Government Code is amended to read:
16325.5. (a) Notwithstanding any other law, and to the extent not
prohibited by federal law or the California Constitution, in order
to effectively manage state cash resources, the 2010-11 and 2011-12
General Fund payments projected to be made for the programs or
departments listed in subdivision (b) shall be deferred in the months
of July, October, and March, in whole or in part for no more than
60, 90, and 60 days, respectively, unless otherwise specified in
Section 16326, except for the 2011-12 General Fund payments
referenced in paragraph (1) of subdivision (b), which shall be
deferred as described in paragraph (2) of subdivision (a) of Section
16326. Nothing in this section shall be construed to authorize the
deferral of state payroll, debt service, or rental payments that
support lease-revenue bonds.
(b) The departments and programs subject to subdivision (a) are as
follows:
(1) Kindergarten to grade 12, inclusive.
(2) Supplementary Security Income/State Supplementary Payments
made by the State Department of Social Services to the federal
government.
(3) Local government social services payments.
(c) Prior to implementing each of the payment deferrals identified
in subdivision (b) and other provisions of the act adding this
section, the Controller, Treasurer, and Director of Finance shall
jointly review and compare the actual General Fund receipts and
disbursements with the receipts and disbursements contained in the
most current published cashflow projections. If the Controller,
Treasurer, and Director of Finance determine sufficient cash is
available to make scheduled payments, in whole or in part, through
the 60- or 90-day period or other period specified in law, including
the payments otherwise subject to deferral identified in subdivision
(b), and maintain a prudent cash reserve, the Controller shall make
the deferred payment, in whole or in part, as originally scheduled or
within the time provided for by law. In making the determination
that cash is sufficient to make the payments, the Controller,
Treasurer, and Director of Finance shall also consider costs for
state government, the scope of any identified cash shortage, timing,
achievability, legislative direction, and the impact and hardship
imposed on potentially affected programs, entities, and related
public services. The Department of Finance shall notify the Joint
Legislative Budget Committee of this action within 10 days of making
this determination.
(d) In the event payments are deferred pursuant to subdivision (a)
or other provisions of the act adding this section, beginning July 1
of the appropriate fiscal year, the Controller, Treasurer, and
Director of Finance shall review on a monthly basis, or as necessary,
the actual General Fund cash receipts and disbursements in
comparison to the receipt and disbursement projections associated
with the Governor's most current cashflow statements. If the
Controller, Treasurer, and Director of Finance determine sufficient
cash is available to make payments otherwise deferred for the 60- or
90-day period or other period specified in law, including the
payments otherwise subject to deferral identified in subdivision (b)
or other provisions of the act adding this section, and maintain a
prudent cash reserve, the Controller shall make the deferred
payments, in whole or in part, as soon as feasible unless otherwise
provided in Section 16326. In making the determination that cash is
sufficient to make the payments, in whole or in part, the Controller,
Treasurer, and Director of Finance shall also consider costs for
state government, the scope of any identified cash shortage, timing,
achievability, legislative direction, and the impact and hardship
imposed on potentially affected programs, entities, and related
public services. The Department of Finance shall notify the Joint
Legislative Budget Committee within 10 days of this determination and
identify the date upon which the payments were made or will be made.
(e) Upon concurrence of the Controller, Treasurer, and Director of
Finance, deferrals authorized pursuant to subdivision (a) or other
provisions of the act adding this section may be moved forward to the
prior month or delayed to the subsequent month. This subdivision
shall not apply to those payments to kindergarten to grade 12
specified in paragraph (1) of subdivision (b) for the 2011-12 fiscal
year. Any changes may be authorized no sooner than 30 days after
notification in writing by the Department of Finance to the Joint
Legislative Budget Committee, or not sooner than whatever lesser time
the Chairperson of the Joint Legislative Budget Committee, or his or
her designee, may determine. In the event cash is available to make
the payments earlier than identified in the notification, as
determined by the Controller, Treasurer, and Director of Finance, the
Department of Finance shall notify the Joint Legislative Budget
Committee within 10 days of making this determination.
(f) This section shall become inoperative on September 1, 2012,
and, as of January 1, 2013, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2013, deletes
or extends the dates on which it becomes inoperative and is
repealed.
SEC. 3. Section 16326 of the Government Code is amended to read:
16326. (a) Notwithstanding any other law, except as otherwise
specified in Sections 16325 and 16325.5, cash deferrals specified in
Sections 16325 and 16325.5, as amended by the act amending this
section, shall be limited, as follows:
(1) For the 2010-11 fiscal year, payments to school districts,
county offices of education, and charter schools shall be deferred as
specified in Section 16325.5 with the total amount of the deferrals
under this action limited to two billion five hundred million dollars
($2,500,000,000) for each deferral, and a maximum of three deferrals
during the fiscal year. The total outstanding amount of these
deferrals, as described in Section 16325.5, shall not exceed two
billion five hundred million dollars ($2,500,000,000) at any given
time. The Controller, Treasurer, and the Director of Finance shall
determine and jointly provide a written declaration to the
Legislature and to the State Department of Education, and the State
Department of Education shall inform school districts, county offices
of education, and charter schools of the amounts and timing of
payment deferrals for the 2010-11 fiscal year. This declaration shall
be provided no later than March 31, 2010. It is the intent of the
Legislature that the advance principal apportionment payment due in
July be deferred first as a part of the July 2010 deferral as
specified in Section 16325.5.
(A) Subject to the approval of the Director of Finance, in order
for a county office of education to receive scheduled apportionments
from the Controller if payments are deferred, as specified in Section
16325.5, the Superintendent of Public Instruction shall certify that
the deferral of warrants will result in the county office of
education being unable to meet its expenditure obligations for the
time period during which warrants are deferred, and shall notify the
Director of Finance of this fact on or before June 1, 2010. Subject
to the approval of the Director of Finance, a county office of
education that did not receive apportionments for July 2010 and
October 2010, as specified in Section 16325.5, may seek a hardship
waiver to receive scheduled apportionments from the Controller if
payments are deferred in March 2011. To apply for a hardship waiver,
the Superintendent of Public Instruction shall certify that the
deferral of March 2011 warrants will result in the county office of
education being unable to meet its expenditure obligations for the
time period during which warrants are deferred, and shall notify the
Director of Finance of this fact on or before January 5, 2011. The
criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
(B) Subject to the approval of the Director of Finance, in order
for a charter school to receive scheduled apportionments from the
Controller if payments are deferred, as specified in Section 16325.5,
the chartering authority, in consultation with the county
superintendent of schools, shall certify that the deferral of
warrants will result in the charter school being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Superintendent of Public Instruction
and the Director of Finance of this fact on or before June 1, 2010.
Subject to the approval of the Director of Finance, a charter school
that did not receive apportionments for July 2010 and October 2010,
as specified in Section 16325.5, may seek a hardship waiver to
receive scheduled apportionments from the Controller if payments are
deferred in March 2011. To apply for a hardship waiver, the
chartering authority, in consultation with the county superintendent
of schools, shall certify that the deferral of March 2011 warrants
will result in the charter school being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Superintendent of Public Instruction
and the Director of Finance on or before January 5, 2011. The
criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
(C) Subject to the approval of the Director of Finance, in order
for a school district to receive scheduled apportionments from the
Controller if payments are deferred, as specified in Section 16325.5,
the county superintendent of schools shall certify to the
Superintendent of Public Instruction and to the Director of Finance
on or before June 1, 2010, that the deferral of warrants will result
in the school district being unable to meet its expenditure
obligations for the time period during which warrants are deferred.
Subject to the approval of the Director of Finance, a school district
that did not receive apportionments for July 2010 and October 2010,
as specified in Section 16325.5, may seek a hardship waiver to
receive scheduled apportionments from the Controller if payments are
deferred in March 2011. To apply for a hardship waiver, the county
superintendent of schools shall certify to the Superintendent of
Public Instruction and to the Director of Finance on or before
January 5, 2011, that the deferral of March 2011 warrants will result
in the school district being unable to meet its expenditure
obligations for the time period during which warrants are deferred.
The criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
(D) Notwithstanding Section 16325.5, payment of the March 2011
deferral to county offices of education, school districts, and
charter schools shall be made no later than April 29, 2011.
(E) A county office of education may apply for a waiver for early
payment of the deferrals specified in Section 14041.65 of the
Education Code. To receive a waiver, the Superintendent of Public
Instruction shall certify to the Director of Finance before June 1,
2011, that the county office of education would be unable to meet its
expenditure obligations in July or August 2011. Subject to the
approval and determination of the Department of Finance, a county
office of education may receive a payment of 2010-11 funds in July
2011 up to the amount needed to cover its demonstrated expenditure
obligations. The criteria, as applicable, set forth in statute and
regulation to qualify a school district for an emergency
apportionment shall be used to make the certifications specified in
this subparagraph. Required payments of temporary revenue
anticipation notes or other short-term debt issued for cashflow
purposes in 2010-11 shall be considered expenditure obligations.
(F) A charter school may apply for a waiver for early payment of
the deferrals specified in Section 14041.65 of the Education Code. To
receive a waiver, the chartering authority, in consultation with the
county superintendent of schools, shall certify to the
Superintendent of Public Instruction and the Director of Finance
before June 1, 2011, that the charter school would be unable to meet
its expenditure obligations in July or August 2011. Subject to the
approval and determination of the Department of Finance, a charter
school may receive a payment of 2010-11 funds in July 2011 up to the
amount needed to cover its demonstrated expenditure obligations. The
criteria, as applicable, set forth in statute and regulation to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
Required payments of temporary revenue anticipation notes or other
short-term debt issued for cashflow purposes in 2010-11 shall be
considered expenditure obligations.
(G) A school district may apply for a waiver for early payment of
the deferrals specified in Section 14041.65 of the Education Code. To
receive a waiver, the county superintendent of schools shall certify
to the Superintendent of Public Instruction and the Director of
Finance before June 1, 2011, that the school district would be unable
to meet its expenditure obligations in July or August 2011. Subject
to the approval and determination of the Department of Finance, a
school district may receive a payment of 2010-11 funds in July 2011
up to the amount needed to cover its demonstrated expenditure
obligations. The criteria, as applicable, set forth in statute and
regulation to qualify a school district for an emergency
apportionment shall be used to make the certifications specified in
this subparagraph. Required payments of temporary revenue
anticipation notes or other short-term debt issued for cashflow
purposes in 2010-11 shall be considered expenditure obligations.
(2) For the 2011-12 fiscal year, deferrals described in paragraph
(1) of subdivision (b) of Section 16325.5, and repayment of those
deferrals, shall be scheduled as follows: One billion four hundred
million dollars ($1,400,000,000) shall be deferred in both July and
August of 2011. Two billion four hundred million dollars
($2,400,000,000) shall be deferred in October 2011. Seven hundred
million ($700,000,000) of the July 2011 deferral shall be paid in
September 2011, and four billion five hundred million dollars
($4,500,000,000) shall be paid in January 2012 for the remaining
July, August, and October 2011 deferrals. One billion four hundred
million dollars ($1,400,000,000) shall be deferred in March 2012 and
paid entirely in April 2012. The State Department of Education shall
inform school districts, county offices of education, and charter
schools of the amounts and timing of payment deferrals for the
2011-12 fiscal year. This declaration shall be provided no later than
April 15, 2011. It is the intent of the Legislature that the advance
principal apportionment payment due in July be deferred as a part of
the July 2011 deferral and that the advance principal apportionment
payment due in August be deferred as a part of the August 2011
deferral.
(A) Subject to the approval of the Director of Finance, in order
for a county office of education to receive scheduled payments from
the Controller if payments are deferred, the Superintendent of Public
Instruction shall certify that the deferral of warrants will result
in the county office of education being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Director of Finance of this fact on
or before June 1, 2011. Subject to the approval of the Director of
Finance, a county office of education that did not receive payments
for July 2011, August 2011, and October 2011 may seek a hardship
waiver to receive scheduled payments from the Controller if payments
are deferred in March 2012. To apply for a hardship waiver, the
Superintendent of Public Instruction shall certify that the deferral
of March 2012 warrants will result in the county office of education
being unable to meet its expenditure obligations for the time period
during which warrants are deferred, and shall notify the Director of
Finance of this fact on or before January 5, 2012. The criteria, as
applicable, set forth in statute and regulations to qualify a school
district for an emergency apportionment shall be used to make the
certifications specified in this subparagraph.
(B) Subject to the approval of the Director of Finance, in order
for a charter school to receive scheduled payments from the
Controller if payments are deferred, the chartering authority, in
consultation with the county superintendent of schools, shall certify
that the deferral of warrants will result in the charter school
being unable to meet its expenditure obligations for the time period
during which warrants are deferred, and shall notify the
Superintendent of Public Instruction and the Director of Finance of
this fact on or before June 1, 2011. Subject to the approval of the
Director of Finance, a charter school that did not receive payments
for July 2011, August 2011, and October 2011 may seek a hardship
waiver to receive scheduled payments from the Controller if payments
are deferred in March 2012. To apply for a hardship waiver, the
chartering authority, in consultation with the county superintendent
of schools, shall certify that the deferral of March 2012 warrants
will result in the charter school being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Superintendent of Public Instruction
and the Director of Finance on or before January 5, 2012. The
criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
(C) Subject to the approval of the Director of Finance, in order
for a school district to receive scheduled payments from the
Controller if payments are deferred, the county superintendent of
schools shall certify to the Superintendent of Public Instruction and
the Director of Finance on or before June 1, 2011, that the deferral
of warrants will result in the school district being unable to meet
its expenditure obligations for the time period during which warrants
are deferred. Subject to the approval of the Director of Finance, a
school district that did not receive payments for July 2011, August
2011, and October 2011 may seek a hardship waiver to receive
scheduled payments from the Controller if payments are deferred in
March 2012. To apply for a hardship waiver, the county superintendent
of schools shall certify to the Superintendent of Public Instruction
and to the Director of Finance on or before January 5, 2012, that
the deferral of March 2012 warrants will result in the school
district being unable to meet its expenditure obligations for the
time period during which warrants are deferred. The criteria, as
applicable, set forth in statute and regulations to qualify a school
district for an emergency apportionment shall be used to make the
certifications specified in this subparagraph.
(D) Notwithstanding Section 16325.5, payments of the March 2012
deferral to the county offices of education, school districts, and
charter schools, shall be made no later than April 29, 2012.
(3) Of the amount appropriated from the General Fund to the
University of California for the 2010-11 and 2011-12 fiscal years,
payments made by the state to the University of California shall not
exceed one-twelfth of the annual appropriation for each month from
July through April. Any remaining appropriation balance may be paid
to the University of California thereafter with no limitations.
(4) Notwithstanding Sections 84320, 84321, and 84321.5 of the
Education Code and any other law that governs the regulations adopted
by the Chancellor of the California Community Colleges to disburse
funds, two hundred million dollars ($200,000,000) and one hundred
million dollars ($100,000,000) from the payment of apportionments to
districts pursuant to Sections 84320, 84321, and 84321.5 of the
Education Code for July and March, respectively, shall be deferred to
October and May, respectively. Notwithstanding this paragraph and
subject to the approval of the Director of Finance, the Controller
shall issue warrants pursuant to Sections 84320, 84321, and 84321.5
of the Education Code that include the full amount of the
apportionment payments for the months of July or March, or both, for
a community college for which the Chancellor of the California
Community Colleges determines, in consultation with the Director of
Finance, on or before June 1 of the preceding fiscal year, that the
deferral of warrants pursuant to this paragraph will present an
imminent threat to the fiscal integrity and security of the community
college.
(5) Of the amount appropriated from the General Fund to the
California State University for the 2010-11 and 2011-12 fiscal years,
payments made by the state to the California State University shall
not exceed one-twelfth of the annual appropriation for each month
from July through April. Any remaining appropriation balance may be
paid to the California State University thereafter with no
limitations.
(6) The 2010-11 and the 2011-12 cash management plans described in
Sections 16325 and 16325.5 may include deferrals in state payments
for specific programs that are disbursed to cities, counties, and
other public entities not addressed elsewhere in this section.
Deferral of payments by the state to cities, counties, and other
public entities not addressed elsewhere in this section shall be as
follows:
(A) Payments shall be deferred as specified in Section 16325.5 per
the specific program.
(B) Payments shall be limited to one billion dollars
($1,000,000,000) for all programs that affect cities, counties, and
other public entities not addressed elsewhere in this section at any
given point in time.
(C) A maximum of three deferrals per specific program may be made
during the fiscal year.
(D) The state shall not defer any payments to a county with a
population less than 50,000, or a city within a county with a
population less than 50,000.
(E) Payments to local governments may be deferred for social
services programs and Mental Health Services Act (Proposition 63 of
2004) programs.
(7) In addition to implementing the payment schedule described in
paragraph (5), the Director of Finance may at any time during the
2010-11 and the 2011-12 fiscal years defer payment of General Fund
moneys, in a cumulative amount not to exceed two hundred fifty
million dollars ($250,000,000) annually, appropriated to the
California State University. Payment of the amount deferred shall be
made in the final week of April.
(b) Limits on payment deferrals specified in subparagraphs (A) and
(C) of paragraph (6) of subdivision (a) shall not apply to payments
to the Mental Health Services Act (Proposition 63) programs.
(c) Upon the Controller's receipt of a letter from the executive
officer of the Administrative Office of the Courts, or any other
executive officer representing cities or counties, the state may
defer payments to the entity or entities that the executive officer
represents as specified in the letter even if the specified amounts
exceed the deferrals authorized in this section or elsewhere in law.
(d) This section shall become inoperative on September 1, 2012,
and, as of January 1, 2013, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2013, deletes
or extends the dates on which it becomes inoperative and is
repealed.
SEC. 4. Section 16328 is added to the Government Code, to read:
16328. Subdivision (g) of Section 36 of Article XIII of the
California Constitution created the Education Protection Account in
the State Treasury. Notwithstanding any law, the Controller may use
the funds in the Education Protection Accounts for cashflow loans to
the General Fund as provided in Sections 16310 and 16381.
SEC. 5. Section 16329 is added to the Government Code, to read:
16329. Subdivision (d) of Section 36 of Article XIII of the
California Constitution created the Local Revenue Fund 2011 in the
State Treasury. Notwithstanding any law, the Controller may use the
funds in the Local Revenue Fund 2011 for cashflow loans to the
General Fund as provided in Sections 16310 and 16381.
SEC. 6. Section 70371.5 of the Government Code is amended to read:
70371.5. (a) There is hereby established the Immediate and
Critical Needs Account of the State Court Facilities Construction
Fund, the proceeds of which shall only be used for any of the
following:
(1) The planning, design, construction, rehabilitation,
renovation, replacement, or acquisition of court facilities.
(2) Repayment for moneys appropriated for lease of court
facilities pursuant to the issuance of lease-revenue bonds.
(3) Payment for lease or rental of court facilities or payment of
service contracts, including those made for facilities in which one
or more private sector participants undertake some of the risks
associated with the financing, design, construction, or operation of
the facility.
(b) Any funds expended from the Immediate and Critical Needs
Account are not subject to Section 77202.
(c) Notwithstanding Section 13340, until July 1, 2012, the
Immediate and Critical Needs Account is hereby continuously
appropriated, without regard to fiscal year, only for the purposes of
acquiring real property and completing preliminary plans.
(d) It is the intent of the Legislature that the money in the
Immediate and Critical Needs Account shall be used in part to pay the
debt service of lease revenue bonds, notes, bond anticipation notes,
or other appropriate financial instruments used to pay for the costs
referred to in subdivision (a) in the amount of up to five billion
dollars ($5,000,000,000). The total bonded indebtedness shall not
exceed that amount for which fine and fee revenues may fully satisfy
the debt service.
(e) The Judicial Council shall collect and make available upon
request information regarding the moneys deposited in the Immediate
and Critical Needs Account resulting from new and increased fees,
assessments, and penalties authorized by the act that added this
section.
(f) (1) The Judicial Council shall make recommendations to the
State Public Works Board before it undertakes projects based on its
determination that the need for a project is most immediate and
critical using the then most recent version of the Prioritization
Methodology for Trial Court Capital-Outlay Projects originally
adopted on August 26, 2006, subject to the availability of funds in
the Immediate and Critical Needs Account. Any such recommendation
shall be accompanied by a certification that there are sufficient
funds in the Immediate and Critical Needs Account. The State Public
Works Board shall establish the scope and cost for each individual
project.
(2) The Legislature finds that there may not be enough resources
to pay for the cost of the projects identified as immediate and
critical needs by the Judicial Council pursuant to its Prioritization
Methodology for Trial Court Capital-Outlay Projects originally
adopted on August 26, 2006, even after considering any bonded
indebtedness that may be issued relying at least in part on those
resources. Therefore, in choosing which projects shall be recommended
to the State Public Works Board to be funded from the Immediate and
Critical Needs Account, the Judicial Council shall consider and
apply, as appropriate, the following factors, among others:
(A) Any economic opportunity that exists for a project.
(B) The effect on available resources of using alternative methods
of project delivery as provided by Section 70391.5.
(3) Nothing in paragraph (2) shall authorize the Judicial Council
to exceed the resources provided by the Immediate and Critical Needs
Account, together with other available resources, in undertaking
projects identified as immediate and critical needs.
(4) As used in paragraph (2), "economic opportunity" includes, but
is not limited to, free or reduced costs of land for new
construction, viable financing partnerships with, or fund
contributions by, other government entities or private parties that
result in lower project delivery costs, cost savings resulting from
adaptive reuse of existing facilities, operational efficiencies from
consolidation of court calendars and operations, operational savings
from sharing of facilities by more than one court, and building
operational cost savings from consolidation of facilities.
(5) The Judicial Council shall not consider and apply an economic
opportunity unless it is reasonably assured that the economic
opportunity is viable and will be realized. If a project is selected
for funding based on an economic opportunity that is withdrawn after
the project is approved, the Judicial Council may cancel the project.
(g) Notwithstanding any law, the Controller may use the funds in
the Immediate and Critical Needs Account of the State Court
Facilities Construction Fund for cashflow loans to the General Fund
as provided in Sections 16310 and 16381.
SEC. 7. Section 2103.1 of the Streets and Highways Code is
repealed.
SEC. 8. Section 14167.35 of the Welfare and Institutions Code is
amended to read:
14167.35. (a) The Hospital Quality Assurance Revenue Fund is
hereby created in the State Treasury.
(b) (1) All fees required to be paid to the state pursuant to this
article shall be paid in the form of remittances payable to the
department.
(2) The department shall directly transmit the fee payments to the
Treasurer to be deposited in the Hospital Quality Assurance Revenue
Fund. Notwithstanding Section 16305.7 of the Government Code, any
interest and dividends earned on deposits in the fund shall be
retained in the fund for purposes specified in subdivision (c).
(c) All funds in the Hospital Quality Assurance Revenue Fund,
together with any interest and dividends earned on money in the fund,
shall, upon appropriation by the Legislature, be used exclusively to
enhance federal financial participation for hospital services under
the Medi-Cal program, to provide additional reimbursement to, and to
support quality improvement efforts of, hospitals, and to minimize
uncompensated care provided by hospitals to uninsured patients, in
the following order of priority:
(1) To pay for the department's staffing and administrative costs
directly attributable to implementing Article 5.21 (commencing with
Section 14167.1) and this article, including any administrative fees
that the director determines shall be paid to mental health plans
pursuant to subdivision (d) of Section 14167.11 and repayment of the
loan made to the department from the Private Hospital Supplemental
Fund pursuant to the act that added this section.
(2) To pay for the health care coverage for children in the amount
of eighty million dollars ($80,000,000) for each subject fiscal
quarter for which payments are made under Article 5.21 (commencing
with Section 14167.1).
(3) To make increased capitation payments to managed health care
plans pursuant to Article 5.21 (commencing with Section 14167.1).
(4) To pay funds from the Hospital Quality Assurance Revenue Fund
pursuant to Section 14167.5 that would have been used for grant
payments and that are retained by the state, and to make increased
payments to hospitals, including grants, pursuant to Article 5.21
(commencing with Section 14167.1), both of which shall be of equal
priority.
(5) To make increased payments to mental health plans pursuant to
Article 5.21 (commencing with Section 14167.1).
(d) Any amounts of the quality assurance fee collected in excess
of the funds required to implement subdivision (c), including any
funds recovered under subdivision (d) of Section 14167.14 or
subdivision (e) of Section 14167.36, shall be refunded to general
acute care hospitals, pro rata with the amount of quality assurance
fee paid by the hospital, subject to the limitations of federal law.
If federal rules prohibit the refund described in this subdivision,
the excess funds shall be deposited in the Distressed Hospital Fund
to be used for the purposes described in Section 14166.23, and shall
be supplemental to and not supplant existing funds.
(e) Any methodology or other provision specified in Article 5.21
(commencing with Section 14167.1) and this article may be modified by
the department, in consultation with the hospital community, to the
extent necessary to meet the requirements of federal law or
regulations to obtain federal approval or to enhance the probability
that federal approval can be obtained, provided the modifications do
not violate the spirit and intent of Article 5.21 (commencing with
Section 14167.1) or this article and are not inconsistent with the
conditions of implementation set forth in Section 14167.36.
(f) The department, in consultation with the hospital community,
shall make adjustments, as necessary, to the amounts calculated
pursuant to Section 14167.32 in order to ensure compliance with the
federal requirements set forth in Section 433.68 of Title 42 of the
Code of Federal Regulations or elsewhere in federal law.
(g) The department shall request approval from the federal Centers
for Medicare and Medicaid Services for the implementation of this
article. In making this request, the department shall seek specific
approval from the federal Centers for Medicare and Medicaid Services
to exempt providers identified in this article as exempt from the
fees specified, including the submission, as may be necessary, of a
request for waiver of the broad based requirement, waiver of the
uniform fee requirement, or both, pursuant to paragraphs (1) and (2)
of subdivision (e) of Section 433.68 of Title 42 of the Code of
Federal Regulations.
(h) (1) For purposes of this section, a modification pursuant to
this section shall be implemented only if the modification, change,
or adjustment does not do either of the following:
(A) Reduces or increases the supplemental payments or grants made
under Article 5.21 (commencing with Section 14167.1) in the aggregate
for the 2008-09, 2009-10, and 2010-11 federal fiscal years to a
hospital by more than 2 percent of the amount that would be
determined under this article without any change or adjustment.
(B) Reduces or increases the amount of the fee payable by a
hospital in total under this article for the 2008-09, 2009-10, and
2010-11 federal fiscal years by more than 2 percent of the amount
that would be determined under this article without any change or
adjustment.
(2) The department shall provide the Joint Legislative Budget
Committee and the fiscal and appropriate policy committees of the
Legislature a status update of the implementation of Article 5.21
(commencing with Section 14167.1) and this article on January 1,
2010, and quarterly thereafter. Information on any adjustments or
modifications to the provisions of this article or Article 5.21
(commencing with Section 14167.1) that may be required for federal
approval shall be provided coincident with the consultation required
under subdivisions (f) and (g).
(i) Notwithstanding Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code, the
department may implement this article or Article 5.21 (commencing
with Section 14167.1) by means of provider bulletins, all plan
letters, or other similar instruction, without taking regulatory
action. The department shall also provide notification to the Joint
Legislative Budget Committee and to the appropriate policy and fiscal
committees of the Legislature within five working days when the
above-described action is taken in order to inform the Legislature
that the action is being implemented.
(j) Notwithstanding any law, the Controller may use the funds in
the Hospital Quality Assurance Revenue Fund for cashflow loans to the
General Fund as provided in Sections 16310 and 16381 of the
Government Code.
SEC. 9. The sum of one thousand dollars ($1,000) is hereby
appropriated to the Controller from the General Fund for
administrative costs associated with this act.
SEC. 10. This act addresses the fiscal emergency declared and
reaffirmed by the Governor by proclamation on January 20, 2011,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
SEC. 11. This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.
SEC. 12. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to protect the credit and fiscal health of the state, it
is necessary that this act take effect immediately.
